The European Union has unveiled a list of U.S. goods worth €95 billion (approximately HK$8.33 trillion) that could face retaliatory tariffs if trade talks with Washington collapse. Boeing aircraft and American-made automobiles are among the primary targets. The European Commission also announced it will file a complaint with the World Trade Organization (WTO) against U.S. "reciprocal tariffs" and related policies.
"The EU remains fully committed to finding negotiated outcomes with the U.S.," Commission President Ursula von der Leyen said. "At the same time, we continue preparing for all possibilities."
Tariff List Covers Planes, Cars, and Alcohol
The proposed EU tariffs focus on industrial and agricultural products, including:
- €10.5 billion in aircraft
- €10.3 billion in auto parts
- €2 billion in automobiles
- €1.3 billion in U.S. wine, beer, and spirits
Additionally, the EU is considering restrictions on €440 million worth of steel scrap and chemical exports to the U.S., potentially through quotas or outright bans. A public consultation on the list will run until June 10.
Stalled Negotiations and Escalating Tensions
EU Trade Commissioner Maroš Šefčovič has been negotiating with U.S. officials, but progress has been minimal. Most U.S. tariffs are expected to remain in place. "If talks fail, the EU will retaliate," Šefčovič warned on March 7.
Since U.S. President Donald Trump took office in January, the U.S. has imposed tariffs on €380 billion (HK$3.3 trillion) of EU exports—70% of total EU-U.S. trade. Brussels argues these measures raise business costs, stifle growth, fuel inflation, and create economic uncertainty.
Rather than mirroring U.S. tariffs, the EU aims to minimize disruption to its own supply chains while maximizing pressure on U.S. interests.
Automakers in the Crosshairs
Boeing's European clients—including Air France, KLM, and Lufthansa—have warned they will refuse deliveries if tariffs inflate costs. Ryanair CEO Michael O'Leary threatened to cancel a US$33 billion order for Boeing 737 MAX jets if tariffs take effect.
EU Files WTO Case Against U.S. Tariffs
The EU's WTO lawsuit challenges Trump's 20% "reciprocal tariff" threat (currently suspended for 90 days but with a 10% baseline duty still in place). Brussels argues the U.S. measures "violate fundamental WTO rules" and seeks to uphold multilateral trade norms.
Meanwhile, Trump and UK Prime Minister Keir Starmer announced a trade agreement on March 8. The U.S. claims the deal opens British markets to billions in American beef, ethanol, and industrial goods, while the UK secures US$10 billion in Boeing orders.
However, analysts dismissed it as a non-binding memorandum with limited economic impact. The pact reduces U.S. tariffs on UK cars from 27.5% to 10% and eliminates steel/aluminum duties—but retains the 10% "reciprocal tariff", favoring U.S. interests. They point out that a genuine trade agreement requires significant time and often takes years to finalize. The agreement touted by Trump may temporarily lower tariffs on certain goods but is unlikely to bring substantial economic benefits over the long term.
(Source: Ta Kung Pao)
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